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​No large tax bill sees IBM Australia pocket AU$40m 2017 profit

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IBM Australia has made its financial results for 2017 available, reporting to the Australian Securities and Investments Commission it raked in AU$40 million in after-tax profit, more than double its 2016 AU$16.8 million lull[1].

Revenue for the 12 months to December 2017 was reported as AU$2.8 billion, a decrease from 2016's AU$3.2 billion. Receipts from customers totalled AU$2.6 billion, while AU$2.5 billion was paid out to suppliers and employees.

During the 12-month period, the local arm of IBM paid AU$8.4 million in tax, almost half of the AU$13.9 paid a year prior.

IBM considers its principal continuing activities in Australia to be the provision of advanced information services, products, and technologies, including the marketing of imported and locally produced information processing equipment, software, and supplies.

The company's financial report also describes the group's primary services offerings as IT, datacentre, and business process transformation outsourcing; application management services; technology infrastructure and system maintenance; web hosting; and the design and development of "complex IT systems".

Must read: IBM shows growth after 22 straight quarters of declining revenues, but has it turned the corner?[2]

During 2017, the sales of goods -- hardware and software -- totalled AU$634 million; services -- such as consulting and outsourcing -- AU$2.1 billion; and financial services AU$12 million.

Meanwhile, software licence fees paid to the ultimate parent entity in 2017 was AU$315 million.

In Australia, Big Blue's subsidiaries comprise IBM Global Services Australia Limited, Cerulean Solutions Ltd, IBM Superlife Services Ply Limited, IBM Australia Client Servloes Ply Limited, Kenexa Ply Limited, and JRA (Aust) Ply Limited.

Previous subsidiaries Netezza Pty Limited, i2 Australia Pty Limited, Curam Software Pty Limited, Emptoris Australia Pty Limited, and Algorithmics

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